Featured Product

    SRB Announces Single Resolution Fund on Way to Reach Target

    July 14, 2020

    SRB announced that the Single Resolution Fund received an increase of EUR 9 billion from 3,066 institutions for 2020, bringing the total amount in the Fund to approximately EUR 42 billion. The target size of the Single Resolution Fund has been set at 1% of covered deposits by the end of 2023. The Fund will end up at close to EUR 70 billion, taking into account the current annual growth in covered deposits. According to the SRB Chair Elke König, the Fund is being "steadily built up" and is on its way to reach the target.

    The Single Resolution Fund was established by the Single Resolution Mechanism Regulation (Regulation 806/2014 or SRM Regulation). Where necessary, the Fund may be used to ensure the efficient application of resolution tools and the exercise of the resolution powers conferred to the SRB by the SRM Regulation. The Single Resolution Fund has grown to EUR 42 billion after the latest round of transfers and can be used to support the effective resolution of a failing bank, if needed. However, the Fund shall not be used to absorb the losses of an institution or to recapitalize an institution. The Fund is composed of contributions from credit institutions and certain investment firms in the 19 participating member states within the Banking Union. These contributions are calculated according to EU law and collected via the national resolution authorities. 

    Within the resolution scheme, the Single Resolution Fund may be used only to the extent necessary to ensure the effective application of the resolution tools, as last resort, in particular:

    • To guarantee the assets or the liabilities of the institution under resolution
    • To make loans to or to purchase assets of the institution under resolution
    • To make contributions to a bridge institution and an asset management vehicle
    • To make a contribution to the institution under resolution in lieu of the write-down or conversion of liabilities of certain creditors under specific conditions
    • To pay compensation to shareholders or creditors who incurred greater losses than under normal insolvency proceedings

     

    Related Links

    Keywords: Europe, EU, Banking, Single Resolution Fund, Resolution Framework, SRMR, Banking Union, SRB

    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582